We have today released an ASX announcement detailing highlights and cashflow for the final quarter of FY20. Despite the impact of COVID-19, Q4 results reflect strong revenue growth ensuring the business enters FY21 with significant momentum. Key operating highlights included:
- The Craft category experienced a significant acceleration of growth in Q4 growing at over +50% (IRI Data 13 weeks to June 15th) as consumers shifted to at home consumption and Founders First brands continue to outperform the category
- Wholesale quarterly revenue growth for majority-controlled entities of +262% and total portfolio growth +112% vs Q4 19 on a 100% basis despite the closure of venues.
- Secured a +100% increase in distribution across National Retailers from September (from 2,067 to 4,069 unique distribution points in the Nationals)
- Secured +42 new on and off premise accounts across the eastern seaboard as part of the Indy Fast Start Program, ensuring a balanced representation across all sales channels
- Executed a master services agreement with Ultra Commerce to launch an enterprise-grade digital commerce platform powered by Amazon Web Services. This platform will allow for seamless growth and will dramatically simplify the customer experience (B2B) for sales orders
- Successfully Integrated KIS (Kangaroo Island Distillery) and Potters in the Hunter Valley. These acquisitions are expected to add ~ +$6M to the top line and significant cashflow to the business in FY21.
- Completed the rebranding of Potters Brewery in the Hunter Valley to Foghorn Brewery Hunter Valley (75%-owned by FFL) which will drive significant growth of the Foghorn brand in one of the most visited tourist destinations in Australia.
- Launched a Spirits distribution model which will initially sell Kangaroo Island Spirits, Green Ant Gin and Brogan’s Way products throughout Australia
- Well-funded with $11.4M cash on hand at the end of FY20
Commenting on the final quarter of FY20, Founders First Managing Director, Mark Haysman said: "Our ability to accelerate growth despite the COVID-19 impact to venues is testament to the growing category of craft and the continued strengthening demand. We have been able to continue to drive growth through our focus on quality distribution, particularly through the off-premise channel seeing wholesale revenue growth of +262% for majority-controlled businesses and +112% for the total portfolio. Pleasingly we expect the recent distribution gains to further accelerate growth in H121" To view the full announcement, read here.